NEW YORK, May 14, 2019 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against American Renal Associates Holdings, Inc. ("American Renal" or the "Company") (NYSE: ARA) and certain of its officers and directors. The class action, filed in United States District Court, United District Court, District of New Jersey, and indexed under 19-cv-10416, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired American Renal securities between August 10, 2016 and March 27, 2019, both dates inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased American Renal securities during the Class Period, you have until May 28, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Defendant American Renal purports to operate as a dialysis services provider in the United States.
The complaint alleges that the defendants made materially false and misleading statements in the Offering Documents concerning the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) issues with American Renal's accounting process for revenue recognition, collections, and related matters would give rise to a U.S. Securities and Exchange Commission ("SEC") investigation into the same, and increased regulatory scrutiny by the SEC; (2) American Renal's financial statements for the fiscal years 2014, 2015, 2016 and 2017 contained in its Annual Reports for the years ended December 31, 2016, and 2017, and its condensed consolidated financial statements in quarterly reports from 2016 through 2018 were false and could not be relied upon; (3) American Renal had material weaknesses in its internal control over financial reporting; and (4) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On November 9, 2018, American Renal filed a Form 10-Q with the SEC in which the Company disclosed that in October 2018, SEC staff "requested that the Company voluntarily provide documents and information relating to certain revenue recognition, collections, and related matters."
On this news, American Renal's stock price fell $0.74 per share, or over 4%, to close at $16.76 per share the next trading day, November 12, 2018.
On March 8, 2019, before the market opened, American Renal filed a Form NT 10-K with the SEC, announcing it would delay the filing of its earnings report for the fiscal year ended December 31, 2018, as it continues to examine reserve computations and other accounting practices that may have an impact on the company's accounts receivable and revenue for 2018, as well as previously reported fiscal years ranging from 2014 through 2017. According to American Renal, this followed the SEC's October 2018 request for documents concerning American Renal's revenue recognition, collections, and other related matters.
On this news, American Renal's stock price fell $2.05 per share, or over 16%, to close at $10.46 per share on March 8, 2019.
Then, on March 27, 2019, after market hours, American Renal announced the resignation of its Chief Financial Officer, and that American Renal would restate its financial results for the fiscal years ended 2014 through 2017. It also announced that its investigation had not been finalized.
On this news, American Renal's stock price fell $3.69 per share, or 38%, to close at $6.01 per share on March 28, 2019, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 9980
